AutoBeta(AutoBeta.net)04/04 Report--

At a regular press conference held by the Ministry of Commerce on April 4, spokesman Gao Gao said that the growth of automobile consumption will be promoted by optimizing the market environment, expanding supply channels, promoting the upgrading of consumption structure, and promoting the development of the automobile aftermarket.

The Ministry of Commerce believes that the reduction in value-added tax will be conducive to overall automobile consumption, will take positive measures to promote the development of the automobile market, will further promote the parallel import of cars, and completely abolish the policy of restricting the relocation of second-hand cars. to promote the development of automotive post-market, such as auto racing, auto tourism, automobile modification, etc.

As early as January 28, ten ministries and commissions jointly issued an article on six measures to boost automobile consumption. The "Plan" clearly pointed out that more measures should be taken to promote automobile consumption, mainly including: promoting the scrapping and renewal of old cars, scrapping subsidies for vehicles emitted by the third and lower levels of the country; adhering to the guidance of supporting the superior and strengthening the strong for new energy vehicles; promoting the upgrading of rural vehicles and subsidies for designated types of vehicles. We will steadily promote the relaxation of restrictions on the entry of pick-up trucks into cities; comprehensively abolish the policy of restricting the relocation of used cars, reduce the value-added tax on used cars, and optimize the motor vehicle management measures of local governments.

During the two sessions, the State Council clearly deepened the reform of value-added tax, the policy of reducing the rate of value-added tax has been formally implemented on April 1, and the current tax rate of 16% for manufacturing and other industries has been reduced to 13%. In response to the value-added tax reduction policy, many car companies have announced price cuts, thanks to the reduction of domestic oil products.

Since the second half of 2018, China's auto market has entered a cold winter. car production and sales in 2018 were 27.8092 million and 28.0806 million respectively, down 4.16% and 2.76% year-on-year, while passenger car production and sales were 23.529 million and 23.71 million, respectively, down 5.20% and 4.10% from the same period last year. This is also the first decline in China's auto market in more than 20 years.

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